Although semiconductors continue to slide lower, there are signs that money is frantically buying the dip.

Yesterday, SOXX recorded a net inflow of $5.4 billion in a single day, directly setting a new historical record—and it was 4 times the previous highest record. If we also factor in the funds behind the 3x leveraged long semiconductor ETFs, then the total amount of money flowing into long semiconductor ETFs yesterday reached $7.1 billion.

Bloomberg ETF analyst Eric Balchunas believes that a level of activity on this scale is almost impossible to be driven by retail investors; it looks more like the result of quantitative models or large institutional capital concentrating their allocations.

What’s even more notable is that over the past two weeks, SOXX has already fallen by about 16%. In other words, while the market is selling semiconductor stocks, large amounts of capital are rapidly moving into this sector via ETFs.

Of course, this does not mean semiconductors have bottomed out. ETF fund flows are sometimes affected by factors such as primary market subscriptions and asset allocation adjustments, and not all of them necessarily reflect active bullish views.

But at least it shows that very significant capital has started to view this correction as an opportunity to allocate to semiconductors.#